Sources told AllThingsD that talks fell apart recently due in part to disagreements over whether the Israel-based Waze team would move to the U.S. and integrate itself into Facebook's California headquarters. Other unspecified reasons apparently stalled the deal as well.

Waze offers a socially networked navigation app in which drivers can share traffic information and other real-time data with fellow Waze users on the road. Facebook obviously would've been interested in the social aspect, especially since the company has no mapping or GPS app of its own.

Representatives from both companies declined to comment to AllThingsD. A spokesperson for Facebook also declined CNET's request for comment. CNET has contacted Waze as well and will update the story if the company responds.